Flexbase: First Credit Card for the Construction Industry

Flexbase Revolutionizes Construction Financing with New Credit Card

Flexbase is introducing a novel approach to construction financing through a newly launched credit card. This card, claimed by its founders to be the first of its kind within the industry, provides users with up to 60 days of interest-free financing.

Addressing Cash Flow Challenges

Founded by Zaid Rahman and Hadi Solh, the company specializes in developing automated payment solutions tailored for contractors and the broader construction sector. Their primary focus is on serving the needs of small- and mid-sized businesses.

Rahman, a Thiel Fellow, and Solh’s entrepreneurial journey was deeply rooted in their upbringing within construction-oriented families. They frequently heard firsthand accounts of the difficulties associated with managing cash flow.

A Personal Catalyst for Innovation

Rahman shared a poignant story regarding his father, who operated a construction firm in Dubai. A delayed multimillion-dollar payment from a client triggered a severe health crisis. This experience motivated Rahman and Solh to establish Flexbase, aiming to facilitate easier access to capital and mitigate cash flow issues for construction companies.

“Many construction businesses are either financially unstable or precariously close to it,” Rahman explained to TechCrunch. “A significant contributor to this is the frequent delay in client payments. Furthermore, banks often hesitate to extend short-term credit to construction firms due to these cash flow concerns, increasing the risk of bankruptcy.”

Card Access and Integrated Benefits

The Flexbase Card is available for application by any construction company, with an initial launch in Houston. The co-founders emphasize that users who integrate the card with other Flexbase tools will unlock enhanced financial data insights and qualify for larger credit limits.

Transformative Financing Terms

Solh highlighted the 60-day financing period as a “game-changer” within an industry where payment cycles typically exceed 100 days. A key factor contributing to these lengthy delays is the complexity of construction invoices.

Unlike standard invoices that are often concise, construction invoices can extend to 50-100 pages, encompassing various state and county compliance documents. A single missing document can lead to the rejection of the entire invoice, Rahman noted.

Streamlining Invoice Processing

By automating expense management processes, Flexbase aims to accelerate the flow of invoices between accounts receivable and accounts payable. This automation is projected to reduce payment times by as much as 50 days.

Underwriting for Growth

“Traditional business evaluation methods are inadequate for construction companies when assessing creditworthiness,” Rahman stated. “However, through our underwriting process, we can provide companies with sufficient credit to fuel their expansion.”

“We offer the necessary credit within minutes, empowering businesses to pursue larger projects and broaden their client base,” he concluded.